principal amount
Original sum borrowed
The principal amount is the original sum of money borrowed, invested, or owed—distinct from interest or earnings that accrue over time.
A mortgage's principal is what you borrowed; your monthly payment covers both principal and interest.
In investments, principal is your initial stake before any gains or losses: Don't touch the principal—live off the interest.
- face valuePrinted denomination shown
- interest rateCost of borrowing money
- collateralSecurity for debt
- borrowerOne who takes temporarily
- repayment scheduleTimetable for settling debt
balloon payment · maturity date · par value · loan balance · amortization · outstanding · future value · creditor · capital · original · lump sum · money owed · debtor · credit agreement · promissory note · lender · present value · discount rate
- loan paymentsmonthly payment, loan payment, minimum payment, loan repayment, payment schedule
- interest ratesinterest rates, prime rate, interest, base rate, interest charge
- negotiable instrumentsbill of exchange, promissory note, promissory notes, cashier's check, bank draft
- lendingloans, borrower, approval, lenders, bank loan
principal amountinterest
Attention, stake, or fee
accrued interest · interest charges · interest payment · finance charges · yield
principal amountinterest
Attention, stake, or fee
interest payment · accrued interest · finance charges · compound interest · simple interest